Fighting Crypto Ponzi Scheme, Ireland's Central Bank Cooperates With European Regulators

The Central Bank of Ireland is working with European authorities to fight crypto fraud. (Photo; Doc. Cryptonews)

JAKARTA The Central Bank of Ireland plans to fight crypto-related fraud. Especially the Ponzi scheme fraud problem that covers the cryptocurrency space. Gabriel Makhlouf as Governor of the Central Bank of Ireland stressed the importance of action to address the fraud model.

The Central Bank of Ireland also wants to increase protection for investors and prevent criminal acts such as money laundering, fraud, and price manipulation, in order to maintain financial stability. Makhlouf therefore plans to establish partnerships with European regulators. The collaboration is aimed at developing a comprehensive regulatory framework for the crypto industry.

Even so, the Governor of the Central Bank of Ireland distinguishes which cryptocurrencies are licensed by the government and which are not. Furthermore, Makhlouf is also still considering adopting government-backed cryptocurrencies such as Electronic Money Tokens (EMT) and Asset Reference Tokens (ART). He assessed that the two assets had met the necessary requirements and had proper control, as reported by Bitcoinist.

Warn Investors

On the other hand, the Governor of the Central Bank of Ireland warned investors to be careful when investing in cryptocurrencies. Makhluf described this as picking up lottery tickets with potential loss.

Governor Makhlouf further emphasized the importance of urgent policy actions and supported the European Union's Initiative in developing a regulatory framework for the crypto asset industry, as well as supporting new regulations disclosed by Market in Crypto Assets Regulation (MiCA).

Along with this action, crypto fraud cases have caused huge losses. Based on Chainalysis reports, fraud and scamming activity accounted for more than $10 billion in losses to investors in 2022 alone.

The actions of the Central Bank of Ireland highlight the importance of clear regulations for the crypto industry. In addition, this condition emphasizes the importance of protecting consumers and investors from unexpected risks.